Goldman Sachs cuts gold target to $4,900

• Goldman Sachs reduced its year-end gold price forecast by US$500 per ounce to US$4,900.
• The bank said it expects the US Federal Reserve to keep interest rates unchanged through 2026, delaying potential cuts until 2027.
• Analysts said higher interest rates could continue to weigh on gold and other risk-sensitive assets, including cryptocurrencies.

Goldman Sachs lowered its year-end gold price target to US$4,900 per ounce from US$5,400, citing expectations that the US Federal Reserve will not cut interest rates during 2026.

The revised forecast assumes the next Federal Reserve rate reductions could occur in March 2027 and December 2027, later than the bank had previously expected.

“Our gold price views remain structurally constructive but tactically cautious, with near-term downside risk and medium-term upside risk,” said Goldman Sachs commodity analysts Lina Thomas and Daan Struyven.

The bank said higher-for-longer interest rates could reduce demand for non-yielding assets such as gold by increasing the relative attractiveness of bonds and cash investments.

Goldman Sachs maintained a positive long-term outlook for gold despite the lower target, and following the forecast revision the metal traded near US$4,135 per ounce, approximately US$135 above the US$4,000 level.

The report also noted that delayed monetary easing could affect cryptocurrencies, with Bitcoin (CRYPTO:BTC) and other digital assets historically benefiting from lower interest rates and increased market liquidity.

Market participants continue to monitor inflation trends, Federal Reserve policy, and geopolitical developments in the Middle East, with CME FedWatch data indicating expectations that US rates will remain at or above current levels through the remainder of 2026.

At the time of reporting, Bitcoin price was $62,591.51.